Monday, October 01, 2012

Sideways action - a danger to your portfolio

Markets are choppy after making a new high on sep 14.  Gap ups and any bounce is being sold.  To me there is underlying distribution taking place.  Markets need to push ahead with large number of stocks participating in the move for a rally to sustain.  At this point taking a short position may have a better probability of success than a long position.  It's only during sideways choppy action people try to over trade and lose money.  Cash is also a position.  Wait patiently for the market to setup.

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